Gopal Snacks IPO Review

Gopal Snacks IPO

Gopal Snacks Limited’s IPO consists of an offer for sale of 1.60 crore shares aggregating to INR 650 crores. The company will not receive any proceeds from the offer. The company plans to get the shares listed on the stock exchange to build the brand reputation and achieve the benefits of listing.

Gopal Snacks Ltd IPO – Important Details

Gopal Snacks IPO DateMarch 6, 2024 to March 11, 2024
Gopal Snacks IPO Listing DateMarch 14, 2024
Gopal Snacks IPO PriceINR 381-401 per share
Gopal Snacks IPO Lot Size37 Shares
Gopal Snacks IPO Total Issue SizeINR 650 crores
Gopal Snacks IPO Basis of AllotmentMarch 12, 2024
Gopal Snacks IPO Initiation of RefundsMarch 13, 2024
Gopal Snacks IPO Credit of Shares to DematMarch 13, 2024
Gopal Snacks IPO Issue TypeBook Built Issue
Gopal Snacks IPO Listing AtBSE NSE

Gopal Snacks Ltd IPO – Company Profile

Established as a partnership firm in 1999 and subsequently incorporated as a company in 2009, the company is a fast-moving consumer goods company in India, offering ethnic snacks, western snacks, and other products in ten States and two Union Territories.

The Company offers a wide variety of savory products under the brand ‘Gopal’, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, extruded snacks, and snack pellets, along with fast-moving consumer goods that include papad, spices, gram flour or besan, noodles, rusk, and soan papdi.

The company operates six manufacturing facilities comprising three primary manufacturing facilities and three ancillary manufacturing facilities. The three primary manufacturing facilities are located at Nagpur, Rajkot, and Modasa, and these facilities primarily focus on the manufacturing of finished products. 

The three ancillary manufacturing facilities primarily focus on producing besan or gram flour, raw snack pellets, seasoning, and spices, which are primarily used for captive consumption in the manufacturing of finished products.

Gopal Snacks IPO  – Fundamental Analysis

Gopal Snacks Ltd’s IPO financials unveil a company with consistent revenue growth, remarkable profit increases, and enhanced financial health, indicating a strong investment prospect in the food and beverage sector marked by operational excellence and potential for sustained growth.

Revenue Growth:

The company has demonstrated consistent revenue growth, from ₹11,288.61 million in FY2021 to ₹13,946.53 million in FY2023, indicating a solid market presence and demand for its products.

Equity Growth:

Equity has more than doubled, reflecting investor confidence and successful capital utilization to support further growth and expansion.

Profitability:

Profit after tax has seen a substantial increase, indicating the company’s growing operational efficiency and profitability. The leap to ₹1,123.69 million in FY2023 is particularly noteworthy.

Return on Net Worth (RoNW):

The RoNW has significantly increased, peaking at 38.63% in FY2023, showcasing the company’s efficiency in generating profits from its equity base.

Diluted EPS:

The Diluted EPS has risen substantially, which is a positive indicator for current and potential shareholders, reflecting increasing profitability per share.

Asset and Liability Management:

Total assets have grown, indicating business expansion and investment in operational capacity. Importantly, liabilities have decreased in FY2023, improving the company’s financial stability.

Debt-Equity Ratio:

The debt-to-equity ratio has improved dramatically to 0.37 in FY2023, suggesting a healthier balance sheet with reduced leverage.

Current Ratio:

The improvement in the current ratio to 2.13 in FY2023 indicates better liquidity and the company’s ability to cover short-term obligations.

Inventory Turnover Ratio:

A decrease in the inventory turnover ratio suggests a slower pace of inventory sales, which could warrant closer examination in the context of overall operational efficiency.

Gopal Snacks Ltd IPO Financial Information

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in millions)11,288.6113,521.6113,946.53
Equity (₹ in millions)1,357.381,776.612,908.78
Expenses (₹ in Million)11,033.4413,024.1912,466.91
Profit and Loss After Tax (₹ in millions)211.22415.381,123.69
RoNW (%)15.5623.3838.63 
Diluted EPS only (₹)1.703.339.02
NAV per Equity Share (₹)10.8914.2623.34
Total Assets (in millions)3,418.933,997.224,612.83
Total Liabilities (in millions) 2,061.552,220.611,704.05
Debt-Equity Ratio1.02 0.920.37
Current Ratio1.15 1.142.13 
Inventory Turnover Ratio15.2315.5412.02

Gopal Snacks Limited IPO Peer Comparison

Gopal Snacks Limited, with revenue of ₹13,946.53 million and an impressive RoNW of 38.63%, stands out for its profitability and operational efficiency compared to Bikaji Foods and Prataap Snacks, despite not disclosing its P/E ratio, showcasing strong growth potential.

CompanyRevenue (₹ in millions)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Gopal Snacks Limited13,946.531NA9.029.0238.63%23.34
Bikaji Foods International Limited19,660.721104.675.155.1414.15%38.22
Prataap Snacks Limited16,529.325138.878.518.513.10%288.33

Gopal Snacks IPO Objective

The main objective of the IPO is to build the brand reputation and achieve the benefits of listing, as the company will not receive any funds from the offer. 

Gopal Snacks Limited IPO Risks And Challenges

Gopal Snacks’ IPO faces risks that include dependency on the sales from gathiya and namkeen accounting for 59% of revenue. The inability to adapt to changing consumer preferences or ensure product quality may affect demand, brand loyalty, and overall business performance. Contamination risks and pending notices could impact operations and finances.

  1. Sales from gathiya and namkeen contribute almost 59% of the revenue. An inability to anticipate and adapt to evolving consumer tastes, preferences, and demand for particular products, or ensure product quality may adversely impact demand for the products, brand loyalty, and consequently the business, results of operations, financial condition, and cash flows.
  1. The operations are subject to various contamination-related risks, including improper storage of the products and raw materials, labeling errors, and non-compliance with quality control standards. The average shelf life of the products ranges from three to six months. Any actual or alleged contamination could lead to legal liability, damage to brand reputation, and adverse impact on the business.
  1. The company has various pending notices from various departments, such as VAT, GST, FSSAI, etc. Any material judgment passed against the company will impact the financial and operational condition of the company. 

Gopal Snacks Ltd IPO – Industry & Market Potential

Global sales of savory snacks are valued at US$ 113 billion in 2023, with Asia Pacific leading the market and valued at US$ 46 billion. By 2027, it is anticipated that the market for savory snacks will be worth US$ 149 billion. The market for savory snacks is anticipated to grow at a substantially higher CAGR of approximately 10% in the Asia Pacific region by 2027.

In 2027F, the region is expected to be worth US$ 69 billion. The Indian market is expected to expand at a CAGR of 11% through 2027F, making it the second-largest contributor after China.

In the Indian snack industry, the organized market holds a market share of approximately 57% in Fiscal 2023E and is forecasted to dominate the Indian market, accounting for a market share of approximately 58% by 2027. 

The segment is anticipated to register the highest CAGR of 11.7% during Fiscal 2023 to Fiscal 2027 and is supported by increasing urbanization, rising health awareness, and shifting lifestyles. 

Gopal Snacks Limited IPO  – Type of Offer

Gopal Snacks Limited’s IPO  includes an offer for sale of 1.60 crore shares, amounting to INR 650 crores. The company will not directly benefit from the proceeds but aims to list its shares on the stock exchange to enhance its brand reputation and leverage the advantages of being listed.

Gopal Snacks IPO Offer Size

The offer size of Gopal Snacks is INR 650 crores. The company will not directly benefit from the proceeds but aims to list its shares on the stock exchange to enhance its brand reputation and leverage the advantages of being listed.

Gopal Snacks Limited IPO Allotment Structure

Gopal Snacks allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is reserved for eligible employees.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for a Gopal Snacks IPO?

To apply for the Gopal Snacks IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Gopal Snacks IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Gopal Snacks Limited’s IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares. Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Gopal Snacks IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Gopal Snacks IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Gopal Snacks IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here. If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance. Apart from Alice Blue, there are other ways to check the allotment status of the Gopal Snacks IPO:

Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Gopal Snacks IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the National Stock Exchange’s (NSE) and Bombay Stock Exchange’s (BSE) official websites. You would need your application number and PAN to check the status. Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Gopal Snacks IPO Offer Registrar

The registrar for the Gopal Snacks IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C-101, 1st Floor, 247 Park, 

L.B.S. Marg, Vikhroli (West) 

Mumbai 400 083 

E-mail: [email protected]

Website: www.linkintime.co.in

Gopal Snacks IPO FAQs

1. What is the allotment date of the Gopal Snacks IPO?

The allotment date of Gopal Snacks IPO is March 12, 2024 

2. What is the price band of the Gopal Snacks IPO?

The price band of the shares issued by the company is INR 381-401 per share.

3. What is the size of the Gopal Snacks IPO?

Gopal Snacks Limited’s IPO consists of an offer for sale of 1.60 crore shares aggregating to INR 650 crores. The company will not receive any proceeds from the offer. The company plans to get the shares listed on the stock exchange to build the brand reputation and achieve the benefits of listing.

4. What is the listing date of the Gopal Snacks IPO?

The listing date of the Gopal Snacks IPO is March 14, 2024

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